Michael Anthony Jewelers, Inc., Mt. Vernon, N.Y., a leading marketer and manufacturer of gold jewelry, today reported results for the third quarter and nine months ended November 2.
Sales for the third quarter were $39,593,000, a decrease of $11,388,000 from sales of $50,981,000 in the prior year’s comparable period.
Sales for the nine month period were $90,023,000, a decrease of $18,344,000 from sales of $108,367,000 in the prior year’s comparable period.
“Sales to some of the Company’s largest customers were lower than last year’s comparable period because certain promotions from last year were not repeated,” Michael Paolercio, CEO, said in a statement. “During last year’s third quarter, we also shipped substantial amounts of patriotic and religious jewelry which did not recur this year. In addition, the loss of Service Merchandise as a major customer negatively impacted the company’s revenues.”
He adds, “Gross profits as a percent of sales were less than last year’s comparable quarter for two reasons: higher gold prices and higher customer returns. We experienced higher than expected advertising expenses during the period from one of our largest customers. We continue to feel the effects of lower consumer confidence and, at this time, it appears that this holiday season will not meet our previous expectations and our financial results will also not meet our plans.”
Paolercio also said that the company expects to become profitable by the end of 2003 through the consolidation of its manufacturing operation and a realignment of its expenses.
Michael Anthony Jewelers is a leading designer, marketer and manufacturer of branded affordable fine jewelry and watches, whose customers include jewelry chain stores, discount stores, department stores, television shopping networks, and wholesalers.